Let's change our definition of Required External Financing (REF) by moving Dividends (Div) to the left hand side of the equation (see REF image above). If REF turns out to be negative which of the following actions could be used to help balance a pro-forma balance sheet?

Question 2 options:

	Decrease Dividends
	Decrease Marketable Securities
	Increase Marketable Securities
	Increase Dividends
	Decrease Revolver

Derivation of Required External Financing (REF) Rev + LTD + C/S - MS - A/P-OCL -OL - R/E A [Rev+ LTD + C/S -MS] A-AA/P - AOCL - AOL - AR/E Now: Derivation of Required External Financing (REF) - Div] Div] REF = Investment - Spontaneous Financing - Internal Financing Derivation of Required External Financing (REF) Rev + LTD + C/S - MS - A/P-OCL -OL - R/E A [Rev+ LTD + C/S -MS] A-AA/P - AOCL - AOL - AR/E Now: Derivation of Required External Financing (REF) - Div] Div] REF = Investment - Spontaneous Financing - Internal Financing